Rainfall Ventures Research
Investment Thesis
Rainfall Ventures is an early-stage venture capital firm founded in 2011 and based in Los Angeles. The fund invests in world-class founders solving significant problems across multiple sectors. Ron Rofe, the founder and managing member, brings a faith-driven and values-aligned approach to venture capital, emphasizing partnerships with founders committed to their missions and able to execute at scale. Rainfall believes in identifying category-leading founders early, before their companies become obvious trends.
The firm's approach prioritizes founder quality, founder-problem fit, and a values-aligned mindset. Rainfall has a unique philosophy of "standing by founders" and helping them become category leaders early. This approach has resulted in backing 100+ companies that have generated 3 unicorns, multiple IPOs, and 30+ acquisitions.
Stage Focus
Rainfall Ventures invests across the early-stage spectrum:
- Pre-Seed: $500K-$1M for teams with ideas and early validation
- Seed: $1M-$3M for teams with product-market fit signals
- Series A: Selective participation for exceptional portfolio companies
The fund typically leads or co-leads early rounds and maintains follow-on reserves of 25-50%.
Check Size
Typical investment range: $500,000 - $5,000,000
- Pre-Seed: $500K-$1M
- Seed: $1M-$3M
- Series A follow-ons: Opportunistic
Recent investments like Lexington Bakes ($1M) and previous rounds reflect this range.
Investment Strategy & Lead Tendency
Rainfall Ventures leads or co-leads most early-stage rounds. The fund has demonstrated ability to lead pre-seed and seed rounds, with selective participation in Series A for strong portfolio companies. They typically take board seats or observer rights and maintain active involvement with founders.
Recent Activity
Rainfall has been actively deploying capital into diverse sectors:
- April 2025: Seed investment in Deft Robotics (AI/automation)
- August 2025: $1M seed round in Lexington Bakes (food/retail)
- 2024-2025: Multiple seed investments including AI companies (Harmonic, ConvAI), gaming studios (Banditos, Brain Games), fintech platforms (Cleva, Lighter), and logistics solutions (Curri, Doxel)
- Fund status: Actively deploying from current fund with strong follow-on reserves
- Last known activity: April 2025 (Deft Robotics)
Portfolio Highlights
Unicorns & Major Exits:
- Robinhood (FinTech) - IPO (NASDAQ:HOOD) 2015, 500% growth
- Casper (Retail/E-Commerce) - IPO (NYSE:CSPR) 2015
- Webflow (No-Code/Dev Ops) - Founded 2013, valuation $500M+
Notable Acquisitions (30+):
- Alma (Healthcare) - $28M+ Series B raised, acquired partnerships
- Citus Data (No-Code/Dev Ops) - Acquired by Microsoft
- MaxwellHealth (Healthcare) - Acquired by Sun Life Financial
- Iodine (Healthcare) - Acquired by GoodRx (NASDAQ:GDRX)
- HouseParty (Social) - Acquired by Epic Games
- Islands (Social) - Acquired by WeWork
- Yik Yak (Social) - Acquired by Square (NYSE:SQ)
Active Portfolio Companies (100+ total):
- Fintech: Robinhood, Slope, Novo, Lithic, Karbon, Everee, ClassWallet, Leeway, Vinovest, Zed, Lighter, RWA.xyz
- Gaming: Papaya Gaming, Innplay, Banditos, Brain Games, Sleeper, Volley, Streamelements, Lila, Mushroom Gaming, ConvAI, Harmonic
- Healthcare: Alma, Health Note, Kai, Tomorrow Health
- E-Commerce: Smilo, Scentbird, Rosie, Wthn, Lexington Bakes, Chord
- Developer Tools: Webflow, Carrd, Permit.io, Unito, UbiCloud, Fastgen, FL0, LibLab
- Education: Arist, Study Edge, Pencil Learning
- Marketplace: Kyra, AllSet, Relay, Zerocater
- PropTech: Block Renovation, Kettle, Obligo
- Logistics: Curri, Doxel, Ribbit, Tenderd
- Web3: Sky Mavis, Rounds, Family, Lighter, Unstoppable Domains, Truth Arts, UNKJD
- AI/Robotics: Deft Robotics, DagShub, Harmonic, ConvAI, Kai, Tenderd
Team
Ron Rofe - Co-Founder & General Partner
- Background: Israeli, Staff Sergeant in Israeli Defense Forces (2002-2005)
- Co-founder of Plarium (2006-2010), gaming company with significant scale
- Managing Member of Rainfall Ventures Management, LLC since 2011
- Known for faith-driven, values-aligned approach to venture capital
- Portfolio companies reflect his emphasis on founder quality and problem-solving
- LinkedIn: https://www.linkedin.com/in/ronrofe
- Email: ron@rainfall.ventures
David Berg - Partner
- Supporting partner at Rainfall Ventures
- Involved in investment selection and portfolio management
Geographic Focus
Rainfall invests globally but with concentration in:
- United States: San Francisco Bay Area, New York, Los Angeles, Chicago, Miami
- International: Israel (strong focus), London, Berlin, Sydney, Toronto, Tel Aviv
- Rest of World: Brazil, Philippines, UAE
Global portfolio spans 10+ countries across multiple continents.
Sector & Model Preferences
Primary Sectors:
- FinTech & Payments
- Gaming (indie, mobile, Web3)
- Healthcare & Healthcare Tech
- Developer Tools & Infrastructure
- E-Commerce & Marketplace
- Education Technology
- Property Technology & Real Estate
- Logistics & Supply Chain
- Marketing & AdTech
- Web3 & Digital Assets
- AI/ML & Robotics
- Media & Entertainment
- Food & Beverage Tech
- Consumer Apps & Social
- Enterprise Software
Business Models:
- B2B SaaS (e.g., Webflow, Permit.io)
- B2C Consumer Apps (e.g., Sleeper, Superlocal)
- Marketplace Platforms (e.g., Zerocater, Kyra)
- Developer Tools (e.g., Carrd, LibLab, Unito)
- Gaming Studios (e.g., Papaya, Innplay, Banditos)
- Fintech Infrastructure (e.g., Lithic, Slope)
- No-Code Platforms (e.g., Webflow, Carrd)
Decision Process & Timeline
Rainfall operates as a partnership with Ron Rofe as primary decision-maker. The fund:
- Makes decisions efficiently for early-stage deals
- Typically requires 2-3 weeks for seed-stage decisions
- Values founder meetings and direct interaction
- Focuses on founder fit and problem understanding
- No formal investment committees; partnership-based approach
Founder Preferences
Rainfall looks for:
- Founder quality - Exceptional execution, clear vision, mission-driven
- Problem obsession - Founders deeply committed to solving the problem
- Category leadership - Ability to become category leaders in their space
- Values alignment - Founders with clear values and integrity
- Diverse backgrounds - Portfolio includes founders from Israel, Brazil, Philippines, UK, and across the US
- Technical depth - For developer tools and infrastructure, prioritizes technical founders
- Execution capability - Track record of shipping and iteration
Warm Introductions & Contact
Warm introductions are strongly preferred. Email: hello@rainfall.com
Company has published:
- Rainfall Ventures newsletter (active)
- Multiple founder stories and interviews
- Values-aligned investment philosophy
Fund History & Performance
Rainfall Ventures Fund I:
- Established 2011
- Multiple successful exits including Robinhood (IPO), Casper (IPO), Webflow ($500M+ valuation)
- Strong follow-on rate indicating quality of initial selections
Current/Recent Funds:
- Continuing to deploy from current fund
- Actively raising and investing (2024-2025)
- 100+ portfolio companies with significant exits
Notable Investment Patterns
- Early identification of trends: Webflow (no-code 2013), gaming focus before mainstream adoption
- Consistent follow-on participation: Maintains reserves for strong performers
- Global diversification: 10+ countries, multiple continents
- Sector agnostic with thesis focus: Wide range of industries but clear founder-focused thesis
- Quality over quantity: Concentrated portfolio of world-class founders
- Values-aligned approach: Explicit faith-driven and mission-focused philosophy
Fund Outlook
Rainfall Ventures remains an active early-stage investor with strong track record (3 unicorns, multiple IPOs, 30+ acquisitions) and consistent deployment in recent years. The fund is well-positioned for continued success in backing early-stage founders across diverse sectors.